What Is Comprehensive Car Insurance?

Comprehensive car insurance helps pay to repair or replace your vehicle if it's damaged by something other than a collision. It typically covers theft, vandalism, fire, hail, flooding, falling objects, broken glass, and animal-related damage.

Comprehensive coverage isn’t required by state law, but lenders and leasing companies often require it if you finance or lease a vehicle.¹ Whether you need it depends largely on your vehicle's value, your financial situation, and the risks where you live.

Comprehensive insurance covers damage caused by events other than collisions. Insurance companies sometimes refer to these as "other than collision" losses because they involve circumstances outside your control.

Common covered events include:

• Vehicle theft

• Vandalism

• Fire

• Hail damage

• Windstorms

• Flooding

• Falling trees or branches

• Falling objects

• Broken windshields

• Damage caused by animals

For example, if a hailstorm dents your car, a tree branch falls on your parked vehicle, or your car is stolen from a parking lot, comprehensive insurance may help cover the loss after you pay your deductible.

The exact coverage varies by insurer and policy, so it's important to review policy documents carefully before purchasing coverage.

While comprehensive coverage protects against many risks, it doesn't cover every type of vehicle damage.

Generally, comprehensive insurance does not cover:

• Damage from collisions with another vehicle

• Damage from hitting a guardrail, pole, or building

• Medical expenses from an accident

• Damage to another driver's vehicle

• Liability claims against you

• Mechanical breakdowns

• Routine maintenance

• Normal wear and tear

• Tire wear and replacement

For those situations, you may need collision coverage, liability insurance, medical payments coverage, personal injury protection, or other types of auto insurance.

Many drivers mistakenly assume comprehensive coverage protects against all vehicle damage. In reality, it only applies to specific non-collision events outlined in your policy.

Comprehensive and collision coverage are often purchased together, but they protect against different risks.

A simple rule of thumb is that collision insurance covers damage when your vehicle hits something, while comprehensive insurance covers damage when something happens to your vehicle.

Neither coverage is required by state law, but nearly four out of five drivers purchase collision and comprehensive coverage, according to the Insurance Information Institute.² Lenders also frequently require both coverages until an auto loan is paid off.

Comprehensive insurance isn't mandatory under state insurance laws, but it may still be a smart financial decision depending on your situation.

Drivers who lease or finance a vehicle will typically need comprehensive coverage because the lender has a financial interest in the vehicle. If the vehicle is stolen or heavily damaged, the lender wants assurance that the remaining loan balance is protected.

Comprehensive coverage is often worth considering if:

• Your vehicle is relatively new

• Your vehicle has substantial market value

• You live in an area prone to hailstorms

• Vehicle theft rates are high where you live

• You park outdoors regularly

• You could not easily afford to replace your vehicle

There are situations where dropping comprehensive coverage may make sense.

For example, if your vehicle is worth only a few thousand dollars, the maximum potential claim payment may not justify the cost of premiums and deductibles. In that case, some drivers choose to self-insure and accept the risk of loss.

Before dropping coverage, compare the vehicle's current value with your annual premium and deductible. If a potential claim payout would still be meaningful, keeping comprehensive coverage may be worthwhile.

Comprehensive coverage is generally one of the less expensive portions of an auto insurance policy because claims occur less frequently than collision claims. According to the Insurance Information Institute, the average cost is a little over $134 per year.²

The exact cost depends on several factors, including:

• Vehicle make and model

• ZIP code

• Driving history

• Claims history

• Deductible selected

• Local theft rates

• Weather risks

Drivers who live in areas prone to hurricanes, hailstorms, flooding, or vehicle theft often pay higher premiums because insurers expect a greater likelihood of claims. 

Overall driving risk trends in your state also matter. Our research found that Mississippi, South Carolina, and Wyoming rank as the worst states for drivers.³

While your premium is based primarily on your own driving record, insurers also factor these broader patterns when setting rates.

Rates can vary significantly between companies, even when coverage levels are identical. A simple way to estimate the cost of comprehensive coverage is to compare quotes from multiple insurers using Luva. 

A deductible is the amount you agree to pay before your insurance company contributes toward a covered claim.⁴

Common comprehensive deductibles include:

• $250

• $500

• $1,000

• $2,000

Suppose a hailstorm causes $4,000 in damage and your deductible is $500. You would pay the first $500, and your insurance company would pay the remaining $3,500.

Choosing a higher deductible generally lowers your premium because you're assuming more financial responsibility if a claim occurs. A lower deductible usually increases your premium but reduces your out-of-pocket costs when filing a claim.

When selecting a deductible, consider how much you can comfortably afford to pay without causing financial stress.

Adding comprehensive coverage to an auto insurance policy is usually straightforward.

Follow these steps:

1. Determine your vehicle's current market value.

2. Decide whether comprehensive coverage is financially worthwhile.

3. Choose a deductible amount.

4. Gather quotes from multiple insurance companies.

5. Compare coverage options and exclusions.

6. Add comprehensive coverage to your policy.

7. Review your coverage annually as your vehicle depreciates.

Many insurers allow drivers to add comprehensive coverage online, through an agent, or by calling customer service.

Comparing quotes through Luva makes it easier to evaluate comprehensive coverage options side by side and find the policy that best fits your needs.